The consulting report "Identifying a Merger and Acquisition Target" describes the consulting project carried out at the medium-sized German IT service provider ITSERV GmbH.
Like many companies in the IT industry, ITSERV experiences major difficulties filling vacancies. As a people business the company’s growth is hampered by the lack of skilled IT professionals. Since all opportunities to expand the workforce and to grow organically with more employees are exhausted, the CEO of ITSERV wants to grow externally through a company acquisition.
In order to support his M&A efforts with a sound approach, the CEO has sought the help of an external consultant to find out what a suitable takeover candidate for the company should look like. In the course of the ensuing consulting project, various internal and external analyses are conducted to look more closely at the company and its market and to identify development opportunities for the company that could be implemented through an appropriate M&A strategy.
The analyses include classic analysis tools such as the SWOT analysis and the portfolio analysis which - where applicable - are supplemented by other suitable methods and models. The results of this determination of ITSERV's status quo provide the basis for the identification of development opportunities for the company. In order to make these usable for ITSERV's management independently of the M&A efforts, general recommendations are formulated in this regard.
In order to answer the CEO's original question about suitable acquisition targets, three possible approaches to an M&A strategy along with priorities for the search for takeover candidates are developed, based on the results of the analysis. Moreover, this paper also provides critical considerations concerning ITSERV's way forward with regard to the CEO's M&A efforts such as the importance of considering aspects of corporate culture during due diligence and in the post-merger integration of an acquired company.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Client
- Challenge and Objectives
- Consulting Approach
- Internal Analysis
- Organization and Culture
- Capabilities and Core Competences
- Product and Service Portfolio
- External Analysis
- Market View
- Market Development
- Trends in the Market
- Customer View
- Customer Analysis
- The Customers’ Voice
- Competition
- Evaluation of Findings
- SWOT Analysis
- Portfolio Analysis
- Recommendations
- General Recommendations
- Increase Customer Satisfaction
- Develop Further Core Competences
- Expand Product and Service Portfolio
- Adapt Organization
- M&A Strategies and Target Characteristics
- Synergistic M&A Approach
- Diversifying M&A Approach
- Strategic M&A Approach
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This consulting report, "Identifying a Merger and Acquisition Target", details a consulting project conducted at the medium-sized German IT service provider, ITSERV GmbH. ITSERV faces difficulties filling vacancies, which hampers its organic growth due to the lack of skilled IT professionals. The CEO aims to achieve external growth through company acquisition and sought the help of an external consultant to define suitable acquisition targets. The report analyzes the company and its market, identifies development opportunities, and proposes M&A strategies with target characteristics. It includes internal and external analyses, utilizing SWOT analysis and portfolio analysis to create a comprehensive assessment of ITSERV's current state.
- Identifying the challenges and objectives of ITSERV’s growth strategy
- Analyzing ITSERV’s internal and external environment
- Defining a strategic approach for company acquisition
- Proposing M&A strategies with specific target characteristics
- Providing general recommendations for ITSERV’s development
Zusammenfassung der Kapitel (Chapter Summaries)
The Introduction introduces the client ITSERV, its challenges with talent acquisition, and the objectives of the consulting project. It outlines the consulting approach focusing on internal and external analyses to identify strengths, weaknesses, opportunities, and threats (SWOT) and subsequently develop appropriate M&A strategies.
Chapter 2, Internal Analysis, delves into the organization, culture, capabilities, and portfolio of ITSERV. It examines the company’s organizational structure, its core competences, and the distribution of its products and services.
Chapter 3, External Analysis, analyzes the IT market ITSERV operates in, focusing on market development, key trends such as cloud computing, IT security, Industry 4.0, and AI, as well as customer satisfaction and competition.
Chapter 4, Evaluation of Findings, presents a SWOT analysis of ITSERV, summarizing its strengths, weaknesses, opportunities, and threats, and further analyzes its portfolio using the GE-McKinsey Nine-Box Matrix.
Chapter 5, Recommendations, provides general recommendations to address ITSERV’s weaknesses and opportunities, including improving customer satisfaction, developing core competences, expanding the portfolio, and adapting the organization. It also elaborates on three M&A approaches - Synergistic, Diversifying, and Strategic - and the respective target characteristics for each strategy.
Schlüsselwörter (Keywords)
The report primarily focuses on the challenges of talent acquisition in the IT industry, M&A strategies for growth, internal and external analyses, SWOT analysis, portfolio analysis, and the identification of acquisition targets. Key themes include the shortage of qualified IT professionals, organic and external growth, strategic M&A approaches, industry trends, and customer satisfaction.
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- Daniel M. Wolański (Autor), 2019, Identifying a Merger & Acquisition Target, Múnich, GRIN Verlag, https://www.grin.com/document/537149
